JLL gets in rental home business

Minority stake in Roofstock gives investor clients access to new opportunities

National /
Mar.March 03, 2021 02:00 PM
 JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)

JLL CEO of capital markets Richard Bloxam and Roofstock CEO Gary Beasley (JLL, Roofstock, iStock)

JLL is entering the single-family rental game.

The commercial real estate giant is set to become a minority investor in Roofstock, an online rental housing investment platform, the Wall Street Journal reported. Roofstock will buy JLL’s Stessa, a real estate asset-management platform that has gained traction from smaller investors. It will also work with JLL clients who are interested in the single-family rental market.

“The single-family rental asset class is seeing strong demand from our investor clients — both private and increasingly institutional — and this investment will position our teams to offer unique insights and access to opportunities in this space,” said Richard Bloxam, the CEO of capital markets at JLL.

Establishing a new source of revenue is crucial for JLL, whose earnings fell more than 20 percent in 2020 because of the pandemic-driven decline in leasing, which is expected to be slow to recover this year.

The partnership with JLL, meanwhile, gives Roofstock “credibility with a lot of their customers who are looking to invest in U.S. housing,” the company’s CEO Gary Beasley told the publication. “They can dial in a strategy and our team will build those portfolios for them and manage the properties.”

The single-family rental sector has attracted investors since the Great Recession when they bought bundles of foreclosed homes and converted them to rentals. The pandemic has been a tailwind for the sector as urbanites fled from crowded cities and settled in suburban rental homes with backyards. A recent shortage of affordable rental homes led to the build-to-rent trend among investors.

[WSJ] — Akiko Matsuda





    Related Articles

    arrow_forward_ios
    JLL CEO Christian Ulbrich. (Getty)
    JLL explores sale of China property management wing
    JLL explores sale of China property management wing
    Dollar General CEO Todd Vasos (Retail Industry Leaders Association, iStock)
    Dollar General thrives amid retail apocalypse
    Dollar General thrives amid retail apocalypse
    Bill Lee (Lee & Associates/YouTube)
    Lee & Associates founder Bill Lee dies
    Lee & Associates founder Bill Lee dies
    The vacancy rate for regional and superregional malls is at an all-time high.  (Getty)
    Mall vacancy rate hits all-time high
    Mall vacancy rate hits all-time high
    Rudin Management’s Michael Rudin and Industrious’ Justin Stewart with 32 Sixth Avenue in Tribeca (Rudin, Industrious, Google Maps)
    Rudin teams up with Industrious for flex-office play
    Rudin teams up with Industrious for flex-office play
    Mitchell Kossoff (iStock, Kossoff, PLLC/Illustration by Kevin Rebong for The Real Deal)
    Landlords seeking millions from real estate attorney who disappeared
    Landlords seeking millions from real estate attorney who disappeared
    Gores Group’s Alec Gores and Dean Metropoulos with Sonder CEO Francis Davidson (Getty, Linkedin)
    Sonder considers going public via SPAC
    Sonder considers going public via SPAC
    About 17.3 percent of Manhattan office space is available for lease, the most in decades. (iStock)
    Manhattan office market’s 25% drop is ominous sign for landlords
    Manhattan office market’s 25% drop is ominous sign for landlords
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...